PR

Press Release
HI TECH CHEMICALS LIMITED (ERSTWHILE HI TECH CHEMICALS PRIVATE LIMITED)
October 03, 2023
Rating Withdrawn

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	110.26	Not Applicable \| Withdrawn	-
Bank Loan Ratings	15.50	-	Not Applicable \| Withdrawn
Total Outstanding Quantum (Rs. Cr)	0.00	-	-
Total Withdrawn Quantum (Rs. Cr)	125.76	-	-

Rating Rationale

Acuité has withdrawn its long term and short term ratings on the Rs.125.76 crore bank facilities of Hi Tech Chemicals Limited (HTCL). The withdrawal is in accordance with Acuite's policy on withdrawal of ratings. The rating is being withdrawn on account of request received from the company and No Due Certificate from the lenders.

About the Company

Incorporated in 1986, Hi-Tech Chemicals Limited (HTCL) is a Jamshedpur based company, headed by Mr. Raj Kumar Agarwal, Mrs. Prabha Agarwal and Mr. Rahul Agarwal. The company was engaged in the manufacture of refractories and ceramic items used in steel melting, continuous casting process and blast furnaces of integrated steel plants. The finished products include various Nozzlex Compound, Slag Arresting Dart, Slide Gate refractory, Pre-cast & monolithic, Tap Hole Clay & Trough Mass, CCR Refractory supplied and exported to reputed clients like Tata Steel Ltd., Arcelor Mittal Nippon Steel India Limited, Sheffield Hitech Refractory (Germany), only to name a few. HTCL has been takenover by RHI Magnesita India Limited in January 2023.

Analytical Approach

Not Applicable

Key Rating Drivers

Strengths

Not Applicable

Weaknesses

Not Applicable

Rating Sensitivities

Not Applicable

All Covenants

Not Applicable

Liquidity position: Not Applicable

Outlook: Not applicable

Other Factors affecting Rating

Not Applicable

Key Financials

Particulars	Unit	FY 22 (Actual)	FY 21 (Actual)
Operating Income	Rs. Cr.	270.23	220.85
PAT	Rs. Cr.	53.17	22.66
PAT Margin	(%)	19.67	10.26
Total Debt/Tangible Net Worth	Times	0.56	0.61
PBDIT/Interest	Times	16.31	12.78

Status of non-cooperation with previous CRA (if applicable)

None

Any other information

HTCL has been takenover by RHI Magnesita India Limited in January 2023.

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm
• Entities In Manufacturing Sector:- https://www.acuite.in/view-rating-criteria-59.htm
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm

Note on complexity levels of the rated instrument

In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuité's categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
07 Jul 2022	Letter of Credit	Short Term	7.00	ACUITE A2+ (Reaffirmed)
	Bank Guarantee	Short Term	2.50	ACUITE A2+ (Reaffirmed)
	Cash Credit	Long Term	40.00	ACUITE A- \| Positive (Reaffirmed)
	Term Loan	Long Term	15.02	ACUITE A- \| Positive (Reaffirmed)
	Letter of Credit	Short Term	2.00	ACUITE A2+ (Reaffirmed)
	Cash Credit	Long Term	25.00	ACUITE A- \| Positive (Reaffirmed)
	Bank Guarantee	Short Term	4.00	ACUITE A2+ (Reaffirmed)
	Cash Credit	Long Term	10.00	ACUITE A- \| Positive (Assigned)
	Covid emergency line	Long Term	1.76	ACUITE A- \| Positive (Assigned)
	Covid emergency line	Long Term	12.78	ACUITE A- \| Positive (Reaffirmed)
	Term Loan	Long Term	5.70	ACUITE A- \| Positive (Reaffirmed)
15 Jun 2022	Term Loan	Long Term	10.50	ACUITE A- \| Positive (Reaffirmed)
	Bank Guarantee	Short Term	4.00	ACUITE A2+ (Reaffirmed)
	Term Loan	Long Term	21.00	ACUITE A- \| Positive (Reaffirmed)
	Cash Credit	Long Term	25.00	ACUITE A- \| Positive (Reaffirmed)
	Letter of Credit	Short Term	2.00	ACUITE A2+ (Reaffirmed)
	Bank Guarantee	Short Term	4.50	ACUITE A2+ (Reaffirmed)
	Cash Credit	Long Term	40.00	ACUITE A- \| Positive (Reaffirmed)
	Letter of Credit	Short Term	7.00	ACUITE A2+ (Reaffirmed)
23 Mar 2021	Cash Credit	Long Term	25.00	ACUITE A- \| Stable (Upgraded from ACUITE BBB+ \| Stable)
	Cash Credit	Long Term	40.00	ACUITE A- \| Stable (Upgraded from ACUITE BBB+ \| Stable)
	Bank Guarantee	Short Term	4.00	ACUITE A2+ (Upgraded from ACUITE A2 )
	Letter of Credit	Short Term	2.00	ACUITE A2+ (Upgraded from ACUITE A2 )
	Letter of Credit	Short Term	7.00	ACUITE A2+ (Upgraded from ACUITE A2 )
	Term Loan	Long Term	10.50	ACUITE A- \| Stable (Upgraded from ACUITE BBB+ \| Stable)
	Bank Guarantee	Short Term	4.50	ACUITE A2+ (Upgraded from ACUITE A2 )
	Term Loan	Long Term	21.00	ACUITE A- \| Stable (Upgraded from ACUITE BBB+ \| Stable)
13 Jan 2020	Cash Credit	Long Term	40.00	ACUITE BBB+ \| Stable (Reaffirmed )
	Bank Guarantee	Short Term	4.00	ACUITE A2 (Reaffirmed )
	Letter of Credit	Short Term	2.00	ACUITE A2 (Reaffirmed )
	Letter of Credit	Short Term	7.00	ACUITE A2 (Reaffirmed )
	Term Loan	Long Term	10.50	ACUITE BBB+ \| Stable (Reaffirmed )
	Bank Guarantee	Short Term	4.50	ACUITE A2 (Reaffirmed )
	Term Loan	Long Term	21.00	ACUITE BBB+ \| Stable (Assigned)
	Cash Credit	Long Term	25.00	ACUITE BBB+ \| Stable (Reaffirmed )

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
State Bank of India	Not Applicable	Bank Guarantee (BLR)	Not Applicable	Not Applicable	Not Applicable	4.00	Simple	Not Applicable\|Withdrawn
Axis Bank	Not Applicable	Bank Guarantee (BLR)	Not Applicable	Not Applicable	Not Applicable	2.50	Simple	Not Applicable\|Withdrawn
State Bank of India	Not Applicable	Cash Credit	Not Applicable	Not Applicable	Not Applicable	10.00	Simple	Not Applicable\|Withdrawn
State Bank of India	Not Applicable	Cash Credit	Not Applicable	Not Applicable	Not Applicable	40.00	Simple	Not Applicable\|Withdrawn
Axis Bank	Not Applicable	Cash Credit	Not Applicable	Not Applicable	Not Applicable	25.00	Simple	Not Applicable\|Withdrawn
Axis Bank	Not Applicable	Covid Emergency Line.	Not Applicable	Not Applicable	Not Applicable	1.76	Simple	Not Applicable\|Withdrawn
Axis Bank	Not Applicable	Covid Emergency Line.	Not Applicable	Not Applicable	Not Applicable	12.78	Simple	Not Applicable\|Withdrawn
State Bank of India	Not Applicable	Letter of Credit	Not Applicable	Not Applicable	Not Applicable	7.00	Simple	Not Applicable\|Withdrawn
Axis Bank	Not Applicable	Letter of Credit	Not Applicable	Not Applicable	Not Applicable	2.00	Simple	Not Applicable\|Withdrawn
Axis Bank	Not Applicable	Term Loan	Not available	Not available	Not available	5.70	Simple	Not Applicable\|Withdrawn
Axis Bank	Not Applicable	Term Loan	Not available	Not available	Not available	15.02	Simple	Not Applicable\|Withdrawn

Contacts

Analytical Details	Contact Details
Mohit Jain Senior Vice President - Rating Operations Tel: 022–49294017 mohit.jain@acuite.in Tanvi Kadam Analyst - Rating Operations Tel: 022-49294065 tanvi.kadam@acuite.in	Contact details exclusively for investors and lenders Mob: +91 8069217456 Email ID: analyticalsupport@acuite.in Tel: 022-49294011 rating.desk@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.